Tuesday, December 7, 2010

Worcester, Massachusetts - Our Net Lease Properties comes from Massachusetts. It is regarding a new development that will become a triple net lease property. A tax-increment financing deal was recommended by the city administration of Worcester, Massachusetts. Worcester, Massachusetts is approximately 46 Miles west of Boston - Logan Airport (BOS) located at 1 Fish Pier St E, Boston, Massachusetts.

This "TIF" tax-increment financing deal is a 16 year offer to help finance a $24 million net lease property to be built in Gateway Park. This net lease property will be an office-laboratory building to be built in Gateway Park. 50 Prescott Street LLC, is the developer of this net leased property. 50 Prescott Street LLC, will save about $4.4 million in property taxes over the 16 years. This will not be a loss to the government during this period, the city expects to receive nearly $5.2 million in property taxes for the commercial real estate. A tax-increment financing deal exempts the property owner from having to pay taxes on a negotiated percentage of the increased value of the property resulting from the new construction, while continuing to pay taxes on the base value of the property.

This type of triple net lease properties development is what is needed in some parts of the Country. This will produce many jobs and have services once the triple net leased property is completed. This triple net leased property project and the TIF, will help keep a growing company in the city. This Company is Blue Sky Biotech is a 34-person biotechnology company. This Tenant will lease and wants to expand its space and add employees.

This (TIF) tax relief that the developer will receive will be passed on to the tenants of the building. This Tenant will lease under a favorable triple net lease. With this triple net lease, the payment of Blue Sky Biotech will take care of the property taxes. Also, NNN Lease Investments with No Landlord responsibilities in a strong retail area with an above average household income and long term net leases are highly desirable. With this (TIF) it allows the Tenants to pay about $3 per square foot instead of $6 per square foot for property taxes. This obviously will help keep the Tenant in his location thus helping with local jobs and bringing in property taxes for the triple net leased property.

This triple net lease property is a 33,204-square-foot project site. Currently it is owned by Gateway Park LLC, and is now a vacant lot. The project will become a four-story, 92,000-square foot office-laboratory building. This triple net lease property is the second of four new life sciences-office buildings planned for Gateway Park.

Gateway Park is a joint venture of Worcester Polytechnic Institute (WPI) and the Worcester Business Development Corporation (WBDC). This Investment Property is located in Worcester, near the intersection of I-190 and I-290. Also Gateway Park is designed as a 12 acre, mixed-use destination for life sciences and biotech companies and the people who work for them.

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